Togo Microfinance Deposits Rise 2.7% in Q2 2025, Lending Falls

Finance

Wednesday, 14 January 2026 09:12

Togo Microfinance Deposits Rise 2.7% in Q2 2025, Lending Falls

(Togo First) - Deposits at Togo’s microfinance institutions rose by 11.9 billion CFA francs in the quarter, up 2.7%, according to BCEAO data. Growth lagged Burkina Faso and Senegal but outpaced Benin and Niger.

Lending, however, slowed. Loans outstanding fell by 7 billion CFA francs, a 1.9% quarterly decline, as financing conditions tightened and lenders grew more cautious. Togo and Mali were the only countries in the bloc to record contractions, while Côte d’Ivoire, Senegal and Benin posted increases of 1.6% to 3.4%.

Caution has also been reinforced by worsening asset quality across the region. The gross non-performing loan ratio reached 10.9% at end-June 2025, well above the bloc’s 3% benchmark. Togo also has one institution under temporary administration, out of 10 in the Union.

Microfinance remains key to financial inclusion in Togo, supported by rising savings and a growing client base. But lending momentum and risk management will remain key areas to watch in the second half of the year.

The figures extend a trend seen since early 2025. Deposits had climbed to 436 billion CFA francs in the first quarter, while outstanding loans fell sharply. Between March and June, the contraction in lending eased to -1.9% from -5.2%, while deposits continued to rise.

Togo’s microfinance sector includes nearly 70 institutions that provide financing to households and small businesses. Across WAEMU, there are 527 microfinance institutions serving nearly 19.9 million clients.

Ayi Renaud Dossavi

REFORMS OVERVIEW

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At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

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In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

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